MASON STEVENS LIMITED FINANCIAL SERVICES GUIDE

Transcription

1 MASON STEVENS LIMITED Prepared March 2014 Mason Stevens Limited ACN AFSL

2 About Mason Stevens Limited ABOUT THIS This Financial Services Guide (FSG) was prepared and issued by Mason Stevens Limited (Mason Stevens, we or us). This FSG is designed to provide you with important information regarding our financial services to assist you in deciding whether to use any of these financial services. This document contains the following information: Information about Mason Stevens How to contact Mason Stevens General information about the products and services we provide How we are paid for our services How others are paid in connection with the services we provide Our fees and charges How we deal with complaints about our services and products If you would like further information not contained in this FSG, please contact us. This FSG complies with the relevant requirements of the Australian and Securities and Investment Commission s (ASIC) conditions of relief set out in Class Order 04/194 Managed Discretionary Accounts. It is intended that this FSG should assist you in determining whether to use any of the services described in this document. information about MASON STEVENS Mason Stevens Limited (ABN ) holds Australian Financial Services License (AFSL) No Mason Stevens is a boutique operation staffed by financial services professionals with extensive experience in direct equities, investment management and private wealth management. Mason Stevens provides wholesale investors and retail investors (either through their licensed financial advisers or, in respect of Managed Accounts, directly to trustees of SMSFs dealing directly with Mason Stevens) with access to domestic and international equities, equity derivatives, fixed income securities, hybrids and bonds reported through a sophisticated front end reporting system holding assets via a custodial platform, both managed and operated by Mason Stevens. HOW TO CONTACT US Mason Stevens is the Managed Discretionary Account (MDA) Operator and is responsible for the financial services and functions associated with operating a MDA Service. You should contact Mason Stevens if you wish to discuss your account, obtain information about the type of portfolio in which you are invested, reporting or to update your personal information. Mason Stevens Limited Address: Level 18, Gateway 1 Macquarie Place Sydney NSW 2000 Telephone: info@masonstevens.com.au Website: MASON STEVENS LIMITED 2

3 About Mason Stevens Limited cont. NATURE OF ADVICE Mason Stevens will provide trustees of Self Managed Superannuation Funds (SMSFs) personal advice regarding the investment of their superannuation fund monies in the Mason Stevens MDA Service, if they deal directly with Mason Stevens. In all other circumstances Mason Stevens will provide general advice only. Mason Stevens will not provide personal advice to retail clients who are clients of a licensed financial adviser and you must receive personal advice from your own licensed or authorised financial adviser (referred to as an External MDA Adviser in this FSG) in order to access Mason Stevens services. EXTERNAL MDA ADVISER Mason Stevens will deal with retail clients who have an approved External MDA adviser (financial adviser), and who have received advice, on an initial and ongoing basis, from that financial adviser regarding investment in the products and services available through Mason Stevens. Mason Stevens may deal directly with trustees of SMSFs as retail clients for their Mason Stevens Managed Account. Trustees of SMSFs may also be advised by an external MDA adviser, and in that instance, Mason Stevens will not provide personal advice. Your financial adviser must provide you with a Statement of Advice (SOA) for any personal advice. A Mason Stevens representative may provide you with general advice about securities or other authorised products. We are obliged to warn you that our general advice provided to you as a retail client does not take into account your objectives, financial situation or needs. Therefore, we recommend that you take all reasonable steps to fully understand the outcomes of specific products and strategies adopted in relation to utilising the financial services provided by Mason Stevens. While Mason Stevens believes the general financial product advice and information we provide is accurate and reliable, Mason Stevens, its directors, officers and associates assume no responsibility for the appropriateness for you of that advice. PERSONAL financial product advice If a Mason Stevens representative or an External MDA Adviser provides you with personal advice you must be given a Statement of Advice when that advice is first provided to you. The Statement of Advice will contain the advice, the basis on which it is given and information about fees and associations which may have influenced the provision of the advice. If you have a direct relationship with a Mason Stevens representative and you are investing via our MDA Service (Managed Account) we must review the MDA investment program at least once every 13 months to ensure it remains appropriate for you. If our representative or the External MDA Adviser provides further advice to you and your personal circumstances have not significantly changed, and that further advice is related to the advice provided to you in a previous Statement of Advice, and the further advice is not in writing, you may request a copy of the record of that further advice at any time up to 7 years from the date the further advice was provided to you. You can request the record of the advice by contacting us (where it was Mason Stevens further advice) or the External MDA Adviser in writing or by telephone or by . In the event your financial adviser makes a recommendation to acquire a particular financial product (other than securities), the financial adviser should also provide you with an offer document Product Disclosure Statement (PDS) containing information about the particular product, which will enable you to make an informed decision in relation to the acquisition of that product. Your financial adviser is also required to review your Managed Account s investment program and MDA contract at least every 13 months, and Mason Stevens requires your financial adviser to confirm to us that this review has been conducted. If you as a trustee of a SMSF are dealing with Mason Stevens directly, Mason Stevens will perform these duties. Should you change your financial adviser please contact us so that we can update our records. MASON STEVENS LIMITED 3

4 Products and services About the products and services we are authorised to provide Under its licence Mason Stevens is authorised to provide the following services on behalf of retail and wholesale clients: 1. Provide financial product advice and deal in the following classes of financial products: a. deposit products: b. derivatives; c. foreign exchange contracts; d. debentures, stocks or bonds issued or proposed to be issued by a government; e. life products including: i. investment life insurance products as well as any products issued by a Registered Life Insurance Company that are backed by one or more of its statutory funds; and ii. life risk insurance products as well as any products issued by a Registered Life Insurance Company that are backed by one or more of its statutory funds; f. interests in managed investment schemes including: i. investor directed portfolio services; g. interests in managed investment schemes limited to: i. MDA services; ii. securities; iii. standard margin lending facility; and iv. superannuation; 4. Operate registered managed investment schemes (including the holding of any incidental property) in its capacity as responsible entity. The schemes only hold the following types of property: a. Derivatives; and b. financial assets. 5. Provide the following custodial or depository services: a. operate custodial or depository services other than investor directed portfolio services; b. to retail and wholesale clients. 2. Issuing, applying for, acquiring, varying or disposing of a financial product in respect of the following classes of financial products: a. derivatives; b. foreign exchange contracts; and c. interests in managed investment schemes limited to: i. own managed investment scheme only; ii. MDA services; 3. Underwriting: a. interests in managed investment schemes; and b. an issue of securities; MASON STEVENS LIMITED 4

5 Products & services cont. OUR PRODUCTS AND SERVICES Your financial adviser may recommend you access our services through; 1. a Self-Directed Account or 2. a Managed Account which is our MDA Service. By electing to use our Self-Directed Account or Managed Account you will have access to investing in direct Australian equities, including initial public offerings, derivatives (such as exchange traded options), fixed income and hybrid securities, and you may have access to international markets. self-directed ACCOUNTS Self-Directed Accounts are accounts which allow you, as the client, or your financial adviser, as your representative, to instruct Mason Stevens to deal in securities and/or derivatives on your behalf. These accounts are client directed and you determine the composition of your portfolio. MANAGED ACCOUNTS The Mason Stevens Managed Account is a Managed Discretionary Account (MDA) service operated under ASIC Class Order 04/194 Managed Discretionary Accounts. As an MDA service, the Managed Account requires you to delegate the investment management and trading discretion for securities, exchange traded and over-the-counter securities and derivatives transactions, to Mason Stevens as the MDA Operator. You can select a mandate managed by a third party Investment Manager (or Program Manager) or one of the Mason Stevens internally managed portfolios. The decisions regarding the portfolio composition, participation in corporate actions and timing of buys and sells are at the discretion of the third party Investment Manager or Masons Stevens (as appropriate). Even if there is a third party Investment Manager, you give Mason Stevens your authority to arrange the transactions. As required by ASIC Class Order 04/194 Managed Discretionary Accounts, you must enter into a formal MDA Agreement (contract) prior to accessing this service. The MDA Agreement (contract) is the combination of: a signed Application Form confirming all information provided in it and confirming you have read the Terms; this Financial Services Guide; the relevant investment program (Investment Mandate) or programs. This investment program is prepared in accordance with the requirements of Division 3 of Part 7.7 of the Corporations Act 2001 (Commonwealth) and will comprise the terms of the specific Mason Stevens Managed Account mandate; and a Statement of Advice from your external MDA adviser specifically recommending the Mason Stevens MDA and the particular investment program/s (if Mason Stevens is providing advice to the trustees of an SMSF, a Mason Stevens SOA will complete the agreement). The combination of this documentation to form the MDA Agreement will provide the following information: the nature and scope of the discretions that we will be authorised and required to exercise; any significant risks associated with the MDA Agreement; the basis on which it is considered that the MDA Agreement is suitable for you; and warnings about the importance of any limitations relating to the MDA Agreement which you must consider before signing the MDA Agreement. Unless you are a retail client with a direct relationship with a Mason Stevens representative (ie a trustee of an SMSF) you are required to obtain independent advice before entering into an MDA service, to ensure it is appropriate for your personal financial needs, objectives and circumstances. This independent advice will be provided by the External MDA Adviser. CUSTODY OF YOUR ASSETS Investors assets in a Self-Directed Account or a Managed Account are held on your behalf by Mason Stevens Limited. Mason Stevens will appoint a licensed sub custodian to hold all client monies and financial products. You will receive franking credits (where available) and incur capital gains and losses. Mason Stevens will manage all communications from the companies in which you are invested on your behalf and will collect and maintain the information for you in your Mason Stevens account which you can access online. Some benefits that accrue to the holders of financial products (such as shareholder discounts) might not be available for your benefit. Mason Stevens does not compensate or provide other adjustments if the benefit is not available. MASON STEVENS LIMITED 5

6 Risks and reporting RISKS Before you make an investment decision it is important that you understand the risks that can affect your investment. All forms of investment involve a degree of risk. This could be that your investment does not meet your investment objectives or that you lose money on your investment. Specific investment risks apply to all investments that may have an effect on the value of your Mason Stevens Self- Directed Account or Managed Account. The risks applicable to the investment strategy recommended to you by your financial adviser will be included in the Statement of Advice that will be given to you. However there are particular risks for you that are associated with giving Mason Stevens discretion via the Managed Account Service (MDA Service). Those particular risks are; Program Manager Risk - This risk is associated with the Program Manager (Mason Stevens or an appointed third party managing the relevant investment program) of a certain portfolio underperforming compared to their stated objectives or not following the stated investment mandate. Factors that could impact a Portfolio Manager s performance include loss of key staff or changes in the business. Trading Risk - Trading is executed using electronic systems and oral instructions provided to stock brokers. As such there is room for error when the trades are placed which may result in financial loss. In some cases there may be delays or disruptions to the trade execution process which may impact on the availability of information, communication, amendment or cancellation of transactions which may negatively impact your portfolio. Systems and Technology Risk - Systems and technology risk may be associated with a technical malfunction in the systems of providers of services associated with your investment such as custodians or stock exchanges, which may lead to transactions failing or delays in settlement or execution which may result in losses and/or opportunity cost. It is your responsibility to assess the risks associated with an investment in Mason Stevens products and services prior to investment. If you have any concerns regarding the risks described in this section or any other risks not listed you should contact your financial adviser or Mason Stevens. REPORTING Mason Stevens will provide you with access to continuous electronic reporting detailing your investment portfolio via the Mason Stevens website ( including comprehensive information regarding transactions, the value of your assets and any fees and charges associated with your account. Alternatively, if you do not have access to the electronic reports, you may nominate to receive quarterly reports which will contain the relevant information for the period. In compliance with Class Order 04/194, you will also receive an audited Annual Investor Statement summarising the information provided to you electronically within three months after the end of each financial year. Mason Stevens, as part of its services proposition, will provide a trade advice of transactions executed or arranged by Mason Stevens for you. MASON STEVENS LIMITED 6

7 Transacting HOW CAN YOU PROVIDE INSTRUCTIONS TO US? In general, enquiries regarding your investments should be made to your financial adviser in the first instance so that they can contact us on your behalf. However, you can contact Mason Stevens directly by using the contact details set out at the front of this guide. You can provide instructions to us by telephone, mail, or . Any instructions relating to change of details, withdrawals or transfers must be made in writing and duly signed unless authorisation has been granted on your account. Some products and services may have their own rules around how to provide instructions or carry out certain transactions. You will find information on these rules in the relevant disclosure documents for the product or service. WITHDRAWALS AND TRANSFERS You may notify us at any time of your intention to sell some of or your entire investment portfolio or transfer your portfolio to another provider. This instruction should be provided to us in writing and we will act in accordance with your instructions. Your financial adviser should be consulted to discuss the implications of early termination on your investment performance. The sale or transfer of securities may result in expenses such as transaction costs being incurred. ARRANGEMENTS WITH EXTERNAL PROVIDERS Mason Stevens outsources some of the services related to investment management to expert third parties. In the case of some Managed Accounts, a third party Investment Manager may determine the portfolio composition, strategy and timing of buys and sells for a particular portfolio. You will be provided with an investment strategy document from Mason Stevens detailing the third party s investment philosophy and any specific risks associated with the investment strategy prior to investment. Our relationships with external service providers may mean that we disclose your personal information to organisations involved in providing, managing or administering the product or service in which you are invested such as third party suppliers, printers and posting services. Where your personal information is disclosed we ensure that the information is held, used or disclosed consistent with the National Privacy Principles and other applicable privacy laws and codes. See the Privacy Policy section in this FSG for more information. CORPORATE ACTIONS If you wish to provide instructions to us in relation to corporate actions (proxy voting) or otherwise regarding the financial assets held in your account, please contact Mason Stevens to determine if your account is eligible to vote. You should note that in the case of Managed Accounts, the Investment Manager will have the discretion to determine whether or not the portfolio in which you are invested will participate in corporate actions and you may not have the option to provide instructions regarding your preferences without withdrawing from the investment program. MASON STEVENS LIMITED 7

8 Fees, remuneration and other benefits FEES AND CHARGES You may be charged fees for financial services or products that you receive from Mason Stevens. Details of specific fees and charges are contained in this FSG, any Supplementary FSG or additional disclosure documents for the products or services in which you invest. Fees charged to you will depend on the type of financial products being traded, the frequency of your trading activity, the level of service required and the size of the transactions. In some cases, rates may be subject to negotiation between you, your financial adviser and Mason Stevens. Fees, once disclosed and agreed, will be charged to your account at the time of the relevant transaction. DISCLOSURE OF RELEVANT CONFLICTS OF INTEREST Mason Stevens has relationships with various parties whereby it pays fees and/or receives fees. These parties may include, however are not limited to, brokers, fund managers, banks, financial planners and other referral sources. Mason Stevens has documented processes for controlling, avoiding and disclosing relevant conflicts of interests. Part 2 of this FSG outlines our standard fees, inclusive of any Goods and Services Tax (GST). These rates are subject to change from time to time and you will be notified in writing of these changes as they occur. We may also pay fees to your financial adviser. These fees will be paid out of the fees already charged to you. These fees may be paid on an ongoing basis, or as a one off payment. If agreed between you and your financial adviser, you may also be charged a fee for the advice provided by your financial adviser. These fees will be deducted from your account in accordance with your instructions regarding the amount and frequency of payments. HOW ARE WE REMUNERATED? Mason Stevens is remunerated through the fees that we may charge you, as outlined in Part 2 of this FSG. In some cases we may also be remunerated by third party product issuers through one off, or ongoing fees. Mason Stevens employees and directors are remunerated by way of salary and other employee benefits. They may also be eligible for a discretionary bonus which is based on achievement of pre-determined business objectives such as contribution to profit, client service, risk management and leadership/team contribution. Your External MDA Adviser will disclose in their FSG how they are remunerated. MASON STEVENS LIMITED 8

9 Privacy policy PRIVACY POLICY Your privacy is important to us and we are committed to compliance with the Privacy Act 1998 (Commonwealth) and the Australian Privacy Principles. We maintain a record of your personal profile which includes your personal details and details of your objectives, financial situation and needs. We also maintain records of any recommendations made to you. We may disclose your personal information to external parties, such as our financial service providers, for the purposes of arranging/facilitating your investments or transactions. Such external parties are committed to protecting your privacy. We may also collect, hold and use your personal information to undertake appropriate administration, including in relation to the Know Your Client obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Commonwealth) (AML/CTF Act). If you wish to access information we hold about you, please contact us and we will make arrangements for you to do so. You can obtain a copy of our Privacy Policy by contacting us or visiting our website at: Please contact us if you have any concerns. RECORD KEEPING Mason Stevens will seek to ensure that comprehensive and accurate records of client profiles, together with all advice/ recommendations provided, are properly maintained for seven years in accordance with legal requirements. Your information will also be maintained in accordance with our Privacy Policy. We appreciate your assistance in notifying us of any changes to your personal details or information. ANTI-MONEY LAUNDERING Mason Stevens has adopted a program that complies with the AML/CTF Act. As part of this process, you will need to provide evidence of identification. MASON STEVENS LIMITED 9

10 Complaints policy COMPENSATION ARRANGEMENTS Mason Stevens has professional indemnity insurance arrangements in place to meet its obligations as holder of an AFSL. The insurance satisfies the requirements of section 912B of the Corporations Act 2001 (Commonwealth). These insurance arrangements cover claims relating to the services and products Mason Stevens offers and the conduct of current and former Mason Stevens staff (where Mason Stevens is responsible for the conduct of the staff member at the time of the relevant conduct). WHAT SHOULD YOU DO IF YOU HAVE A COMPLAINT? You have the right to enquire into or complain about the operation of our products and services to the extent that it relates to your investment. Mason Stevens has established an internal dispute resolution policy which ensures that all enquiries and complaints are appropriately addressed. 4. If you remain unsatisfied with our handling of your compliant, or your complaint is not resolved within 30 days (or longer if we notify you that we need longer) you may lodge a written complaint to the Financial Ombudsman Service (FOS), an independent complaints resolution body which is available to you free of charge. Financial Ombudsman Service Address: GPO Box 3 Melbourne VIC 3001 Telephone: Fax: info@fos.org.au Website: FOS Member ID Complaints regarding the general advice you receive, investment performance and, more generally, your dealings with Mason Stevens should be referred to your financial adviser or raised directly with Mason Stevens. If you would like to raise any concerns regarding the operation of your portfolio, including reporting, you should contact Mason Stevens. If you have an enquiry or complaint, please take the following steps: 1. Contact your financial adviser and notify them of the issue. Request that they contact Mason Stevens to seek a resolution. If you are a trustee of a SMSF and are dealing directly with Mason Stevens, you should contact your Relationship Manager directly to notify them of the issue. 2. If you are not satisfied with the outcome of your initial enquiry, you may our Chief Operating Officer (COO) at info@masonstevens.com.au, or send your written complaint to Mason Stevens using the contact details provided in this FSG. 3. Our COO will ensure that your complaint is reviewed and assessed and provide feedback to you through your financial adviser. You will receive written confirmation of receipt of your complaint, and a written confirmation of the determination of the Complaints Officer and any action taken to resolve the issue. MASON STEVENS LIMITED 10

11 Part 2 Standard fees summary Mason Stevens may receive fees for financial services or products that you receive from us. The following table provide an indication of our standard fees (all quoted inclusive of any Goods and Services Tax). These rates are subject to change from time to time. Please note that rates are subject to negotiation by you with Mason Stevens prior to transacting any business and in the absence of any specific agreement the maximum rate or amount may be charged. Fee Amount (% or $) Administration fees This is the fee payable to Mason Stevens for the administration of your investments. The administration fee will vary depending on the product you invest in. Up to 1.1% p.a. Example based on an investment of $100,000 $1,100 based on an administration fee of 1.1% p.a. It may be calculated daily on the total asset value* of your portfolio and deducted from your cash balance monthly in arrears. Custody fee This is the fee payable to Mason Stevens for its role as custodian. Out of this fee Mason Stevens bears the cost of custody of your investments including the fees and charges of any appointed sub-custodian. Up to 1.1% p.a. $1,100 based on a custody fee of 1.1% p.a. It may be calculated daily on the total asset value* of your portfolio and deducted from your cash balance monthly in arrears. Account Service Fee This is the fee payable to Mason Stevens for the service of providing each account. It may be deducted from your cash balance monthly in arrears. Up to $165 p.a. $165 p.a. MASON STEVENS LIMITED 11

12 Part 2 Standard fees summary cont. Fee Amount (% or $) Transaction fees ASX listed Securities: Example based on an investment of $100,000 ASX listed Securities: This is the fee payable to Mason Stevens for the facilitation of buying and selling investments within your portfolio. On buying an investment, transaction fees are added to the purchase price and deducted from your cash balance. On selling an investment, transaction fees are deducted from the sale proceeds credited to your cash balance. In specie transfer fees This is the fee payable to Mason Stevens for processing the transfer of investments in or out of your portfolio. It will be deducted from your cash balance upon completion of your request. Credit Interest on cash balances This is the fee payable to Mason Stevens for the administration of your cash balance. This fee is calculated daily and is payable at the end of each month. It is deducted out of the funds we deposit with the ADIs and is not separately deducted from your cash balance. Up to 1.1% (minimum up to $110) per trade. International Securities: Up to 1.65% (minimum up to A$110) per trade. Over the Counter or Unlisted Securities Up to 2.2% (minimum up to $110) per trade. Unlisted managed funds: Up to $55 per transaction. Exchange Traded Derivatives: 1.65% (minimum up to $100) per Derivative. Securities: Up to $33 for each investment. Unlisted managed funds: Up to $55 per transfer. The cash account fee is the difference between: the interest rate we earn on the bank accounts we maintain at Australian Authorised Deposittaking Institutions (ADIs) in which we deposit the cash that constitutes your cash balance; and the interest rate we pay you for your cash holding, which is generally 0.50% below the RBA Cash Rate. $1,100 on a purchase of $100,000 worth of securities on a transaction fee of 1.1%. International Securities: A$1,650 on a purchase of A$100,000 worth of securities on a transaction fee of 1.65%. Over the Counter or Unlisted Securities $2,200 on a purchase of $100,000 worth of securities on a transaction fee of 2.2%. Unlisted managed funds: $55 on a purchase of $100,000 worth of unlisted managed funds. Exchange Traded Derivatives: $1,650 on a $100,000 option purchase or sale at a transaction fee of 1.65%. Securities: $330 for 10 investments transferred. Unlisted managed funds: $550 for 10 unlisted managed funds. MASON STEVENS LIMITED 12

13 Part 2 Standard fees summary cont. Fee Amount (% or $) Management fee This is the fee payable to Mason Stevens for the management of your investments. Refer to the applicable investment mandate. Example based on an investment of $100,000 It may vary according to your investments. It may be calculated daily on the total asset value* of your portfolio and deducted from your cash balance monthly in arrears. Performance fee This is the fee payable for the outperformance as specified by each Investment mandate. Refer to the applicable investment mandate. Time based service fee This is the fee payable to Mason Stevens for non-standard services such as cost base calculations and adjustments. It would be deducted from your cash balance upon the completion of your request. $110 per hour. $330 for a request that takes 3 hours to complete. Placement fee Mason Stevens may receive a placement fee for initial public offerings (IPOs) and primary issues. This is paid by the product issuer. Up to 5.50% of the placement amount. $5,500 on a placement of $100,000 on a placement fee of 5.5% *Total asset value is the sum of market value for each holding within a portfolio. MASON STEVENS LIMITED 13